Devonport households, along with others across North-West Tasmania, are now experiencing higher electricity network charges, following an approved increase that took effect on July 1, 2026. The Australian Energy Regulator (AER) approved TasNetworks’ annual pricing proposal for the 2026-27 financial year on April 22, 2026, which sees the network component of a typical residential customer’s bill rise by 6.5 per cent compared to the previous year.
For an average residential customer, this translates to an estimated annual network charge of approximately $1,011 in nominal terms for the 2026-27 period, according to TasNetworks’ Annual Pricing Proposal Overview 2026-27. Network charges represent a significant portion of a household’s total electricity bill, accounting for around 44 per cent, with generation making up 31 per cent and other costs such as retailer charges, market charges, metering, and renewable energy certificates comprising the remainder. The Office of the Tasmanian Economic Regulator (OTTER) considers these approved network charges, alongside other costs, to determine the final electricity prices paid by Tasmanians.
Several factors have contributed to this increase in network charges. A key driver is an 11.0 per cent rise in Transmission Use of System (TUOS) charges compared to 2025-26. This increase is attributed to higher load requirements from distribution customers and the revenue recovery for the North West Transmission Development (NWTD) Early Works. Additionally, the Basslink interconnector, which links Tasmania and Victoria, converted to a regulated asset on July 1, 2026. While this change impacts charges, offsetting forecasts for inter-regional settlements residue (IRSR) have helped to reduce the overall TUOS network charges.
The AER also approved an additional $1.06 million in recovery for TasNetworks related to the significant storm events experienced in August and September 2024, which had a substantial impact on the distribution network.
These annual pricing adjustments fall within TasNetworks’ broader 2024-2029 regulatory control period. The AER released its Final Decision on TasNetworks’ revenue proposal for this five-year period on April 30, 2024, setting the maximum revenue the network service provider can recover from customers to operate and maintain the electricity network. TasNetworks’ network tariffs are developed in line with the National Electricity Rules (NER) and its 2024-2029 Tariff Structure Statement (TSS), ensuring prices are fair and comply with regulatory requirements.
While the standard network charges have increased, TasNetworks continues to offer various tariff structures that may allow some households to manage their electricity costs. These include residential time-of-use consumption tariffs (TAS93), which apply different rates during peak (7am-10am and 4pm-9pm) and off-peak periods, and the Customer Energy Resource (CER) tariff (TAS97), which includes a super off-peak rate between midnight and 4am. TasNetworks is also conducting a Low Voltage Small Storage Network Tariff Trial, exploring new ways to integrate and price for household battery storage.
As the state’s energy landscape evolves with increasing demand and the integration of new technologies, TasNetworks is already planning for its next five-year revenue reset period from 2029-34, aiming to balance network investment with affordability for customers. More information on TasNetworks’ pricing and tariff structures can be found on their website.